Tag Archives: general liability insurance

11 How much does restaurant insurance cost

Restaurant Insurance No Comments

How much does restaurant insurance cost in Florida?

The cost of restaurant insurance depends on the policies you choose, the unique risks your restaurant faces, and the value of your business property. Cost estimates are sourced from policies purchased by L and C Insurance customers.

Business owner’s policy costs for restaurants

Restaurant owners typically pay about $175 per month for a business owner’s policy (BOP), or a median annual premium of $2,080. The median value eliminates high and low outliers, providing better representation of typical restaurant insurance costs than the average value.

A BOP bundles general liability insurance with property insurance, usually at a discounted rate. Pricing is determined by your restaurant’s location, operations, and value of business property and equipment.

This policy may include business interruption insurance, which covers income lost at your restaurant due to an unexpected closure.

Median cost per year: $2,030
Policy limit: $1 million per occurrence
Policy deductible: $1,000

Learn how to save money on your policy, which coverage limits to choose. Call L and C Insurance Providers at 888-913-6988

Workers’ compensation costs for restaurants

The median cost of workers’ compensation insurance is about $125 per month for a restaurant, or $1,480 annually. The cost of a policy varies significantly depending on the state and your business operations.

Workers’ compensation insurance is required in almost every state for businesses with employees. Even when it’s not required, it’s a smart purchase in the restaurant industry, where employees routinely cut, chop, and fry in hot oil.

This coverage helps pay medical costs and lost wages for employees who are injured on the job. Most policies include employer’s liability insurance, which protects restaurant owners against lawsuits related to workplace injuries.

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Liquor liability insurance costs for restaurants

The median cost of liquor liability insurance is about $45 per month for a restaurant, or $545 annually. This policy protects restaurants that serve alcohol from liability for the actions of intoxicated customers. In some jurisdictions, your restaurant might need liquor liability insurance in order to obtain a liquor license.

Median cost per year: $545
Generic policy limit: $1 million

General liability costs for restaurants

Restaurants pay a median premium of less than $70 per month for general liability insurance, or $805 annually. This policy protects restaurants against customer injuries and customer property damage, along with advertising injuries.

Insureon’s licensed agents typically recommend purchasing a business owner’s policy, which bundles general liability insurance with commercial property insurance at a discounted rate. It protects your own business property along with covering common business risks.

Median cost per year: $805
Policy limit: $1 million per occurrence
Policy deductible: None

 

11 How much does commercial property insurance cost

Florida No Comments

Cost of commercial property insurance

The size of your building, the value of your equipment, and other factors help determine the cost of property insurance (also called hazard insurance).

Median costs for Insureon customers

The median cost of commercial property insurance is $63 per month or $755 per year with a limit of $60,000 and a median deductible of $1,000. The median offers a more accurate estimate of what your business is likely to pay than the average cost of property insurance because it excludes outlier high and low premiums.

Many Insureon small business customers (16%) pay less than $500 per year and 42% pay between $500 and $1,000 annually for property insurance. However, most customers opt for a business owner’s policy, which combines commercial property insurance with general liability insurance at a discount.

Cost of commercial property insurance for Insureon small business customers.

Factors that impact property insurance costs

Geography. This can help your provider determine which environmental risks your business may face, such as flooding, tornadoes, etc. Land value and local law can also affect what premiums you pay.

Size of business premises. A large office or factory building will likely cost more to insure than a single rented room.

Safety and security. Is your business located in a high-crime area? Does your business possess toxic materials or engage in dangerous activities like mining? Do you have stringent security measures? These can all affect insurance rates.

Age of building. Old buildings can be more susceptible to certain types of damage, so they may cost more to insure. For example, a fire caused by old electrical wiring could translate into costly repairs.

Fire protection. Property with easy access to a fire department and fire hydrants may cost less to insure. Sprinkler systems and fire alarms help reduce insurance costs, too.

Type of equipment. Heavy industrial equipment will cost more to insure than an at-home business’s sewing machine.

Age of equipment. You may pay higher premiums if your equipment is hard to repair because of scarce parts, or if it’s more likely to break down because of heavy use. Alternatively, it might be cheaper to repair older equipment than buy state-of-the-art technology.

Property valuation method. Replacement value coverage costs more than actual cash value coverage. The former pays out for the cost of a brand-new item, while the latter pays out for the item’s depreciated value.

Types of hazards covered. A policy that covers open perils costs more than a policy that covers named perils. Open perils coverage protects against all losses except those specifically excluded in the policy. Named perils coverage only protects against losses listed in the policy.

Bundle property insurance in a BOP for savings

To save money, many small business owners opt for a business owner’s policy (BOP). A BOP combines commercial property insurance with general liability insurance at a lower rate than purchasing each policy separately. Fill out Insureon’s free online application to compare quotes for a business owner’s policy.